Owners corporation guides: the A – Z of AGM’s

If you own a flat, apartment or unit, you’re probably a member of an owners corporation, and you’ll have to meet once a year. Learn all about why, and what’s involved.

In Victoria, most owners of a flat, apartment or unit are also members of an owners corporation (formerly body corporate).

The owners corporation manages the common property and may set rules for the individual lots.

If your owners corporation receives or pays out money, it must hold a yearly meeting of all lot owners. This is called the annual general meeting (AGM).

As a lot owner, you must not wait longer than 15 months between AGMs.

The meeting is used to elect the owners corporation manager plus other office bearers and committee members. It also allows lot owners to consider a maintenance program and budget for the following financial year.

The meeting must cover:

income and expenditure of the owners corporation during the past financial year

assets and liabilities of the owners corporation at the end of the past financial year

maintenance works and the maintenance plan

a report from the committee

a report from the owners corporation manager

complaints and emerging issues.

Before the meeting – how to prepare

The current owners corporation manager, secretary or committee must send you notice of the meeting, financial statements, budget, minutes of the previous meeting and an agenda, at least 14 days ahead of the meeting.

The notice must be in writing, and can be hand delivered, posted, or sent by email or other electronic form.

Read the documents carefully.

They are your chance to become familiar with the financial position and issues involved with your owners corporation, and help you be better prepared at the meeting.

forward minutes of the meeting from the previous year and any reports required to be tabled at the AGM

prepare the financial statements, reports and a proposed budget for the next financial year

identify and assemble the motions to include on the agenda

consider sending out a covering letter with the notice and agenda that sets out background to the issues, such as encouraging people to nominate to be on the committee, explaining any changes to fees, options for insurance and any necessary repairs and maintenance issues for the coming year.

What’s on the agenda?

The owners corporation manager, secretary or committee should contact you to determine agenda items for discussion. Because the AGM may have a full agenda, some matters may be left to a special general meeting.

During the meeting – do you have the numbers?

You must have a minimum number of members at your meeting to complete the business of the AGM. The minimum number is called a ‘quorum’.

For an owners corporation AGM, the quorum is at least 50 per cent of the total votes or lot entitlements. If you don’t have a quorum, the AGM can still go ahead, but can only make ’interim’ decisions.

To calculate whether you have a quorum, count:

all attending members, both financial and non-financial

holders of proxies and powers of attorney.

Who’s in charge?

The chairperson of the owners corporation runs the AGM. They conduct the election of the new committee, and stand down once the new chairperson is elected. If they are not present, lot owners can elect another lot owner or the owners corporation manager to chair the meeting.

Other lot owners or the manager can help the chairperson to run the AGM, so long as the majority agree to it in a vote and the decision is recorded in the minutes.

Votes & elections

To make decisions and elect a committee, owners corporations can hold a vote. This requires careful preparation.

If you owe fees or other money to the owners corporation, you cannot vote on ordinary resolutions, but can still vote on issues that require a special or unanimous resolution. You must pay outstanding fees at least four business days before the AGM, unless paying by cash.

If your owners corporation has 13 or more lots it must, by law, elect a committee at each AGM. If there are fewer than 13 lots, a committee is optional. The old committee should only stand down once the new committee has been elected.

Keeping records of the AGM

By law, an official record of your AGM must be kept – known as the minutes. This is usually the secretary’s role. You must be given access to the records on request. The minutes must include the:

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Dr Claire Noone is Director of Consumer Affairs Victoria, the state’s consumer affairs regulator. Consumer Affairs Victoria helps create a competitive and fair market place for businesses and consumers. It is part of Victoria’s Department of Justice. Claire blogs about a variety of issues affecting consumers and businesses, including buying and selling property, renting and retirement villages. Her posts also include links to information on the Consumer Affairs Victoria website.

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